Pepe Coin Price Exploded 1,600% After This Signal, Will History Repeat?

Pepe Coin price remains one of the best-performing assets in light of the recent market volatility. While erratic movements in the Bitcoin price have forced most crypto assets into bearish technical setups, PEPE remains bullish. Moreover, a bullish signal just flashed on the Pepe weekly chart, which sets up the stage for a 260% breakout rally. The last time this signal was spotted, the meme coin skyrocketed 1600% in 98 days.  

Pepe Coin Price Stochastic RSI Hit Is Oversold On the Weekly Chart

The PEPE price stochastic RSI has hit its lowest since the asset began trading. This suggests Pepe Coin is under extreme sell pressure and might be due for a reversal.

The stochastic RSI oscillator shows the lines crossing upwards (marked with circles on the chart). This crossover in oversold territory suggests a potential bullish reversal in the short term, although it needs confirmation from price action breaking key resistance levels.

The current trend still appears to be downward in the short term, characterized by the falling wedge pattern. If a breakout occurs to the upside, this pattern typically indicates a bullish reversal.

The last time the Stochastic RSI hit the oversold area on the weekly chart, Pepe coin price surged over 1600% in less than three months. If this were to happen again, the PEPE price is looking at a 260% gain from the current price to new all-time highs (ATH).

Price-DAA Divergence Suggests Accumulation

Santiment analytics data shows the Pepe coin price-DAA (Daily Active Addresses) divergence is positive, which means that the number of active addresses is increasing. However, the PEPE price has been dropping steadily and consistently since August 24 due to short-term selling pressure, potentially futures traders shorting the asset.

The divergence in Daily Active Addresses and the price could also indicate more users accumulating the asset at lower prices, expecting a future rebound, as seen in the consistent drop in consistent spikes in whale transactions as the price decline continues.

 PEPE Price Technical Analysis

The Pepe coin action long-term trend has seen significant volatility. The sharp price spike reaching $0.00001605, followed by a gradual decline, indicates speculative trading activities with major price swings.

The price of PEPE may find resistance around the upper boundary of the falling wedge at $0.00001000, which is the immediate resistance level. A breakout above this level would suggest a bullish reversal to the previous high near $0.00001872.

Pepe coin price analysis chart

Conversely, the lower boundary of the falling wedge, around $0.00000700, is the immediate support level. A break below this level could see the price move lower to the psychological level of $0.00000500.

Overall, the Pepe coin is a phenomenal meme coin with little fundamental but great resilience. Meme coins of this nature typically surge higher and faster than those with utility. Take the Shiba Inu coin price, for instance. When it was just a meme coin, it rallied over 20,000,000%. However, since it migrated over to the utility side with the creation of the Shibarium blockchain, price action has been a little sticky.

Hence, if the general market conditions change, Pepe coin price might be the first to establish new all-time high prices.

The post Pepe Coin Price Exploded 1,600% After This Signal, Will History Repeat? appeared first on CoinGape.